Sept 15, 2010 (LBO) – Standard & Poor’s Ratings Services has raised the long-term local currency corporate credit rating on Sri Lanka Telecom (SLT) to ‘BB-‘ from ‘B+’ with a stable outlook, a statement said. At the same time, Standard & Poor’s confirmed the ‘B+’ long-term foreign currency corporate credit rating on the company and revised the rating outlook to stable from positive.
The rating actions on SLT reflect the rating action by Standard & Poor’s on the sovereign credit rating on Sri Lanka, the rating agency said.
On Tuesday, Standard & Poor’s raised its long-term foreign currency sovereign credit rating on Sri Lanka to ‘B+’ from ‘B’, and the long-term local currency rating to ‘BB-‘ from ‘B+’ with a stable outlook on both.
“The credit profile of SLT is driven by Sri Lanka’s country and macroeconomic risk, the company’s significant capital expenditure plans, and its weak operating performance stemming from intense competition,” said Standard & Poor’s credit analyst Mehul Sukkawala.
The country and macroeconomic risk has been reducing because of favorable GDP growth prospects, given the positive impetus of the end of the 30-year ethnic war in May 2009.
“We expect Sri Lanka’s m